Hacker News new | ask | show | jobs
by Yossarian_Lives 4930 days ago
I know there will be a lot of people feeling extremely vindicated in their suspicions that if HBO offered Game of Thrones for legal download they would rake the money in. Let's take a second to work through the counter-argument though.

Instead of asking why they don't cash in on the clear demand, why not ask yourself how HBO & Co would operate if they did sell shows by the episode and direct to consumers. If you're looking for a proxy, the outcome probably wouldn't be a million miles from the networks, where audience levels translate into ad revenue, which means shows live or die very quickly. Look at Fox's 2010 series Lone Star. Despite having the best-rated pilot of any of that season's debuts, it was cancelled after two low-rated episodes.

Have you ever asked yourself why HBO, Showtime and AMC have the track record they do in producing great TV of movie-rivalling production value and movie-topping narrative chops? The simple answer is that they run a subscription model and that gives you a lot of freedom. In the first instance, a significant part of HBO's subscriber base is there for boxing first and foremost: money in the bank for the programming arm. In the second instance, once you're paying for something monthly, you're actually quite unlikely to cancel it even if you don't extract the full value from your subscription (see cinema all-you-can-eat memberships). Above all, it allows you to operate from a stable base of yearly income and that completely flips the consideration of which programs stay and which programs go. It's simply a consideration of opportunity cost; is there a better series that could fill this slot?

The subscription model is precisely the reason that HBO is able to swing for the fences on things like Boardwalk Empire and Game of Thrones, which are both enormously expensive undertakings. It's entirely because the shows are able to prove themselves over seasons, and not episodes, that subscription-driven channels are able to make them. And even then the judgment of whether to continue is usually based on creative satisfaction and not cold, hard audience figures - both the Wire and Treme kept their places on the roster despite comparatively lousy viewing figures.

The problem with a subscription model is that it has to be all or nothing. If you start giving people a way not to subscribe, they won't. They'll just pay to watch episodes as they become available. That's not even to get into the practicalities of carrier relations and all the added considerations that throws into the mix.

tl;dr: Game of Thrones might be a no-brainer for selling legal downloads, but things like Game of Thrones don't get made by companies that use that business model for very good reasons.